Socio-Economics & History Commentary

This is sad but it is the true state of America. America is going to suffer what Argentina went through in 2001-2003. It is not going to look pretty. I suspect that it will be alot worse. Corporate fascism means oppression of the little guy. The sheeple are disposable when fascism sweeps through. Paul J Watson reports :

Full frontal assault on every aspect of freedom kicks into high gear as the elite twist the knife into the rotting carcass of the United States
The wholesale looting of America and the transfer of wealth and power over to a private banking elite who are setting up a world government, along with the complete obliteration of any remaining freedom to protest, resist, or even speak out against this agenda, is now entering its final phase as numerous different pieces of the jigsaw puzzle fall into place and portray a clear picture of tyranny.

We are about to sound the death knell for the United States if every one of the following attacks on our liberty, free speech, sovereignty, and right to not be ruled over by an unelected banking dictatorship is not fiercely opposed and crushed.

RED ALERT 1The passage of the “Climate Bill” by the House and its likely approval by the Senate represents the entrée for the complete and total subjugation of any freedoms we had left and the beginning of nightmare regulation and suffocating control over every aspect of our personal lives by millions of green stasi tasked with enforcing impossible to attain goals of 80% carbon dioxide reduction – all based on the manufactured threat of global warming. This bill will also sink the economy and create a new great depression, effectively obliterating America’s first world status. It represents a transfer of power and wealth from both the U.S. government and the American taxpayer over to the system of world government and global regulation now being erected by means of the climate change hoax. ……
…..RED ALERT 2The seemingly endless economic “bailouts” represent the wholesale looting of the American taxpayer and the grand theft of trillions of dollars by private banking interests who refuse to even disclose where the money went.

Not satisfied with stealing tens of trillions, under the Obama administration’s new regulatory reform plan, the Federal Reserve is now trying to enrich itself with dictator powers that will give it complete control over the U.S. economy, handing them the authority to “regulate” and shut down any company whose activity it believes could threaten the economy and the markets……..
……..RED ALERT 3Federal hate crimes legislation, which in reality would criminalize “thought crimes,” has cleared the House and now faces the Senate as S.909, the Matthew Shepard Hate Crimes Prevention Act (officially, the Local Law Enforcement Hate Crimes Prevention Act).

S.909 is a direct violation of the First Amendment. It allows the federal government to prosecute people involved in “hate speech” transmitted over television, radio, and the internet. The House version of the bill states:

“Whoever transmits in interstate or foreign commerce [radio, TV, internet] any communication, with the intent to coerce, intimidate, harass, or cause substantial emotional distress to a person, using electronic means to support severe, repeated, and hostile behavior, shall be fined under this title or imprisoned not more than two years, or both. (HR 1966, SEC 3, Sec. 881a)”

In other words, if a talk show host engages in “hostile” speech against a person or persons of the above mentioned federally protected group that talk show host will face federal prosecution and the prospect of a two year prison term. …….
………RED ALERT 4The Senate bill S.787, otherwise known as the Clean Water Restoration Act (CWRA), would replace language in the regulatory act currently using “navigable waters” with “waters of the United States.”

What this means is that “the government would essentially be able to regulate everything from standing water in floodplains to creeks that run behind business and residences,” according to an Environmental Leader report. This represents a complete takeover of private land and waterways by the federal government, a total assault on private property rights and a complete federalization of America’s land and water.
……..
If this bill becomes law, it will empower the federal government to seize private property on a whim, using similar powers that Communist China employed during Chairman Mao’s “great leap forward,” where landowners had their property violently confiscated and stolen by the government.

If this bill passes the Senate, private property rights in the United States are effectively null and void and the federal government would legally have the power to bulldoze families from their homes as routinely happens in Communist China.

RED ALERT 5Amongst the myriad of assaults on the Second Amendment rights of American citizens undertaken by the Obama administration during the course of its first year in office, the one that stands out as the most alarming is the attempt to ban people who appear on the terrorist watch list from buying guns.

But isn’t stopping terrorists from buying guns surely a sensible measure to take? The problem is that the terrorist watch list, sometimes called the no fly list, is not a list of likely terrorists, it is a sprawling database of of innocent people that contains the names of over one million Americans. This is a rise of 32% since 2007 alone.
…..
This represents a new end run around the Second Amendment and a concerted effort on behalf of the federal government to classify millions of innocent Americans as potential terrorists, thus stripping them of their Constitutional right to own firearms.

RED ALERT 6Our right to protest against any of the egregious assaults on the Constitution that are listed above is itself being removed by new law enforcement and Pentagon training manuals and guidelines that define protesting as domestic terrorism.

Over the last few years we have documented countless examples of security assessment reports from the likes of the Department of Defense, the Department of Homeland Security and the FBI, as well as police training manuals, which state that anti-war protesters, gun owners, veterans, Ron Paul supporters and those who merely cite the Constitution should be equated with extremists and domestic terrorists.

The fact that the government is now treating people who merely criticize its conduct as domestic terrorists is the clearest signal possible that the United States has entered a period in history similar to Germany in the early 1930’s and that it can only be a matter of time before the right “emergency” provides the justification for dissidents to be targeted for round-ups and mass imprisonment.

No one can claim now that this is merely a paranoid delusion – the government itself is training its law enforcement and military arms that protesters and people who use their First Amendment rights are domestic terrorists. The last time this happened was under King George shortly before the American Revolution.

ONE MINUTE TO MIDNIGHTIf we don’t stand up in unison and exercise our right to protest and free speech now more than ever before, while pointing out that the real terrorists are those who would seek to destroy the freedoms enshrined in the Bill of Rights, then we may find ourselves doing our protesting behind the barbed wires and the concrete blocks of an internment camp.

The hour is late, the clock stands at one minute to midnight, and the federal government, through all the examples documented above, is on the verge of implementing nothing less than a total environmental, financial and societal dictatorship and killing what once was the United States of America.

Almost identical programs of total enslavement are also being pushed through in almost every other major western country at the same time.

If we don’t stop obsessing about the minutia of life and actually concentrate on the imminent destruction of the very principles of our livelihoods, the bedrock freedoms that allow us to operate in relative comfort on a daily basis and be reasonably secure in our own homes, being able to pay our bills, put food on the table, earn money, and air our grievances when government threatens to impinge on those basic freedoms, then there will be nothing left but a rotten hollow carcass and a memory of what America once strived to be – land of the free, home of the brave – not land of the thief, home of the slave.

What is really happening to America? The country is plunging headlong into corporate fascism. Draw your own conclusions. Mike Whitney: A Bloodless Coup :

The trouble started 24 months ago, but the origins of the financial crisis are still disputed. The problems did not begin with subprime loans, lax lending standards or shoddy ratings agencies. The meltdown can be traced back to the activities of the big banks and their enablers at the Federal Reserve. The Fed’s artificially low interest rates provided a subsidy for risky speculation while deregulation allowed financial institutions to increase leverage to perilous levels, creating trillions of dollars of credit backed by insufficient capital reserves. When two Bear Stearns hedge funds defaulted in July 2007, the process of turbo-charging profits through massive credit expansion flipped into reverse sending the financial system into a downward spiral which has just recently begun to decelerate.

It is inaccurate to call the current slump a “recession”, which suggests a mismatch between supply and demand that is part of the normal business cycle. In truth, the economy has stumbled into a multi-trillion dollar capital hole that was created by the reckless actions of the nation’s largest financial institutions. The banks blew up the system and now the country has slipped into a depression.

Currently, the banks are lobbying congress to preserve the “financial innovations” which are at the heart of the crisis. These so-called innovations are, in fact, the instruments (derivatives) and processes (securitization) which help the banks achieve their main goal of avoiding reserve requirements. Securitization and derivatives are devices for concealing the build-up of leverage which is essential for increasing profits with as little capital as possible. If Congress fails to see through this ruse and re-regulate the system, the banks will inflate another bubble and destroy what little is left of the ailing economy.

On June 22, 2009, Christopher Whalen, of Institutional Risk Analysis, appeared before the Senate Committee on Banking, Housing and Urban Affairs, and outlined the dangers of Over-The-Counter (OTC) derivatives. He pointed out that derivatives trading is hugely profitable and generates “supra-normal returns” for banking giants JP Morgan, Goldman Sachs and other large derivatives dealers. He also noted that, “the deliberate inefficiency of the OTC derivatives market results in a dedicated tax or subsidy meant to benefit one class of financial institutions, namely the largest OTC dealer banks, at the expense of other market participants.” Christopher Whalen:

“Regulators who are supposed to protect the taxpayer from the costs of cleaning up these periodic loss events are so captive by the very industry they are charged by law to regulate as to be entirely ineffective….The views of the existing financial regulatory agencies and particularly the Federal Reserve Board and Treasury, should get no consideration from the Committee since the views of these agencies are largely duplicative of the views of JPM and the large OTC dealers.”

Whalen’s complaint is heard frequently on the Internet where bloggers have blasted the cozy relationship between the Fed and the big banks. In fact, the Fed and Treasury are not only hostile towards regulation, they operate as the de facto policy arm of the banking establishment. This explains why Bernanke has underwritten the entire financial system with $12.8 trillion, while the broader economy languishes in economic quicksand. The Fed’s lavish gift amounts to a taxpayer-funded insurance policy for which no premia is paid. Whalen continues:

“In my view, CDS (credit default swaps) contracts and complex structured assets are deceptive by design and beg the question as to whether a certain level of complexity is so speculative and reckless as to violate US securities and anti-fraud laws. That is, if an OTC derivative contract lacks a clear cash basis and cannot be valued by both parties to the transaction with the same degree of facility and transparency as cash market instruments, then the OTC contact should be treated as fraudulent and banned as a matter of law and regulation. Most CDS contracts and complex structured financial instruments fall into this category of deliberately fraudulent instruments for which no cash basis exists.”

No one understands these instruments; they are deliberately opaque and impossible to price. they should be banned, but the Fed and Treasury continue to look the other way because they are in the thrall of the banks. Insiders call this phenomenon “regulatory capture”.

Credit default swaps (CDS) are a particularly insidious invention. They were originally designed to protect against the possibility of bond going into default, but quickly morphed into a means for massive speculation which is virtually indistinguishable from casino-type gambling. CDS can be used to doll-up one’s credit rating, short the market or hedge against potential losses. CDS trading poses a clear danger to the financial system (The CDS market has mushroomed to $30 trillion industry) but the Fed and other regulators have largely ignored the activity because it is a cash cow for the banks.

Whalen again:

“It is important for the Committee to understand that the reform proposal from the Obama Administration regarding OTC derivatives is a canard; an attempt by the White House and the Treasury Department to leave in place the de facto monopoly over the OTC markets by the largest dealer banks led by JPM, GS and other institutions….

The only beneficiaries of the current OTC market for derivatives are JPM, GS and the other large OTC dealers…. Without OTC derivatives, Bear Stearns, Lehman Brothers and AIG would never have failed, but without the excessive rents earned by JPM, GS and the remaining legacy OTC dealers, the largest banks cannot survive and must shrink dramatically.” (Statement by Christopher Whalen to the Committee on Banking, Housing and Urban Affairs, Subcommittee on Securities, Insurance, and Investment, United States Senate, June 22, 2009)

The Geithner-Summers reform proposals are an utter fraud. They’re a meaningless public relations scam designed to conceal the fact that the banks will continue to maintain their stranglehold on OTC derivatives trading while circumventing government oversight. Nothing will change. Bernanke and Geithner’s primary objective is to preserve the ability of the banks to use complex instruments to enhance leverage and maximize profits.

The banks created the financial crisis, and now they are its biggest beneficiaries. They don’t need to worry about risk, because Bernanke has assured them that they will be bailed out regardless of the cost. Financial institutions that have explicit government guarantees are able to get cheaper funding because lending to the bank is the same as lending to the state. And, so it goes. The underwriting of the banks with public resources changes the fundamental structure of the existing system. It’s the end of free markets and the beginning of state capitalism.

My thoughts exactly. Fiat currencies are in trouble. All the major currencies: USD, EUD, JPY, UKP… look shaky. Quantitative Easing and competitive devaluations are going to lead the world to a monetary meltdown.

The Gold Report interviews Charles Oliver and Jamie Horvat :On the global stage of currency devaluation and debasement, the reasons for owning gold seem obvious. But have you ever stopped to consider the derivative market? According to Charles Oliver and Jamie Horvat, both senior portfolio managers at Sprott Asset Management, “The impact of the derivatives has yet to express itself.” In this exclusive interview with The Gold Report, Charles and Jamie explain how gold will react in the New Financial (dis)Order. Both foresee $2,000 gold in the next three years and, ultimately, “significant” hyperinflation on a global scale over the next decade.
The Gold Report: Jamie and Charles, on your site you’ve posted a recently updated report, “Reasons to Own Gold.” In it you say that the impact of the derivatives has yet to express itself. Can you explain that for our readers?

Charles Oliver: There are many reasons to own gold. I think one of the biggest ones is the actual devaluation and debasement of currencies. Having said that, one of the lesser-known ones is the derivative market; if you look at the derivative market on a global basis, it is absolutely enormous.

And the downfall of the financial system last year in part was the fact that many of the banks in the financial system in the U.S. and around the world had a capital base that was leveraged up 30 times or more on their balance sheet. The derivatives market is hundreds of trillions of dollars. When you look at that relative to the capital base of the whole financial system, the whole financial system gets dwarfed.

So, in periods of volatility, you can have some huge swings in some of these instruments. Some of these instruments may be off balance sheets, and there’s certainly an element of risk should some of these need to be unwound.

Jamie Horvat: We’re in a deleveraging process now and we need to get our personal savings rate back in line, as well as our personal balance sheets and the banking balance sheets. When you have that leverage you get less lending. You need to continue with that growth; so, as a result of all of that, we’re seeing governments move to quantitative easing, which is printing money and trying to force money into the system and force spending. Then what happens is currency is debased against all hard assets; and gold, as the ultimate store of value and a hard asset class in an exchange of money, over time reacts to that environment. It will have a positive bias going forward.

TGR: We read a lot about U.S. dollar devaluation and expected worldwide inflation. Why hasn’t gold gone over $1,000?

CO: That’s an excellent question. My own personal viewpoint is that today it should be at $2,000 an ounce, but it’s not. I think that sometimes these things take a long time to work their way out. For example, look at something like Freddie Mac and Fannie Mae. Last year they basically fell out of bed. There were people shouting out very loudly four to five years before that these companies were effectively bankrupt and insolvent. It just took a long period of time for the valuations to work their way out. In the case of gold, I do believe that it will be higher, but sometimes you’ve just got to be patient and wait for these things to unfold.

JH: The other thing we’ve been witnessing is the battle between deflation vs. inflation. People in the deflation camp think we’re going into another Great Depression, the Dow is going to 1000 points and the only thing you should hold is cash, as the global economy will continue to shrink.

Since we have come off the gold standard—and the reason I believe we will never go back to the gold standard—governments have used quantitative easing or the expansion of money supply to reflate the system. We’re going through one of those periods again where they print massive amounts of money and debase currencies vs. hard assets, in an attempt to reflate the system. I believe we are in a bottoming phase in the market; but we may retest the lows. The markets will continue to move sideways and be volatile as consumers continue to save and balance sheets are slowly repaired. Governments will continue to print and throw money into the system to expand the monetary supply and reflate the system. As you do that, you simply debase currencies.

So, you have this short-term fight between deflation and inflation similar to the sideways moving markets of 1973 – 1976. Gold moved from $33 an ounce to $38 to $180 or so, and in that sideways, volatile market from ’73 to ’76, it was knocked back down to around $100. Unfortunately, the end result of the quantitative easing resulted in stagflation. And that set up for the euphoric run of gold into the $800 range in the early ’80s.

TGR: So would we expect to see something like that again, where gold will cross, and continue to trade, above $1,000? Or would we expect it to cross $1,000, spike and then come back down into that $900 range again?

CO: I don’t think $1,000 is a magical number; it is a round number, so people look at it. But as I said, my own personal viewpoint is that gold will go through $2,000. I think there will be a spike at some point in the future, but I don’t know how high that spike will be. I’ve heard people talk about $5,000, $10,000—I’ve even heard some numbers higher than that—and I can see the potential spike going to such levels. It’s not a forecast at this point in time; I will keep a conservative call of $2,000 in the next three years, which is what I have been saying for a while. But, yes, I expect the spike will likely be significantly higher than that.
….. CO: ….. There will be a huge expansion of the monetary base probably over the next decade from a number of governments on this planet, and there will be a significant amount of inflation that occurs during the next decade. We do believe that hyperinflation is going to occur, and it will be quite significant.

So, I think in the next decade you’ve got to put it into a relative situation. I think the long-term norm price for gold will actually probably be well over $1,000 when we look back 5 to 10 years from now.

TGR: When you say hyperinflation will occur, are you expecting that to be worldwide or isolated as it is now while the major countries look at a large inflation period?

CO: I believe that hyperinflation is probably going to be on a large global scale, as most of the countries around the world competitively devalue their currencies. But it’s a fact of life right now as the quantitative easing is going on, and in this type of situation, you are going to get significant inflationary impacts.

TGR: Once we go into stagflation or hyperinflation, I’m going to guess that it makes sense to be holding gold bullion.

CO: Gold bullion or assets that hold their value against inflation. And the stock market, funnily enough, can act as an inflation hedge. In fact, if you look at a lot of the studies, the stock market has been one of the best ways to protect your assets against the ravages of inflation.
…. TGR: Since last November and December, the gold majors have had quite a run up. Would we expect to see any more significant appreciation in the major gold equities?

CO: The simple answer is yes, because I believe the price of gold is going higher. So, I think many of these companies will benefit from increasing earnings and cash flow. Having said that, being the largest gold producer in the world is not a good thing because it’s very hard to grow when you’re at the top. In fact, most of the big guys, they’re just doing mergers and acquisitions to maintain their current level. I believe that on a long-term basis, the best value and growth really comes from the smaller- and mid-cap sector of a well-diversified portfolio of gold companies.
….. TGR: Following the guidelines you’ve just outlined, do you have any companies in that small- and mid-cap sector that you’re looking at that you can share with our readers?

CO:In the juniors that are currently producing is a company like Wesdome, which is in Quebec. In Canada we also have Rainy River Resources Ltd. (TSX.V:RR) and Detour Gold (TSX:DGC), which are multimillion-ounce deposits currently undergoing studies. Another producer in the junior area in Canada would be San Gold Corporation (TSX.V:SGR).
…… CO:In terms of the larger producers, some of the names that we have on our top-10 would be companies like IAMGOLD, Goldcorp (TSX:G) (NYSE:GG), Kinross Gold Corporation (K.TO) (NYSE:KGC)—we like all those names. In the slightly smaller areas in the development stages—and Jamie mentioned some of them—Osisko is going to be bringing on a mine in Quebec next year. Lake Shore Gold is ramping up right now. Allied Nevada just commenced commercial production.
….TGR: During 2008 you increased your bullion percentage, but I see right now from fund stats that bullion is at 5%.

CO: As we all know, the market was horrible last year. Gold stocks were being treated like any other stock; they were, in fact, probably being treated worse. So we felt that bullion was probably better, and increased the bullion weighting. We actually ramped up bullion from single digits to about 20% when we peaked in November, and that was because we liked the defensive nature of bullion. In retrospect, the bullion held up much better than the stocks, so it was a good thing to do.

As we looked at the valuations last fall, we said, “You know what? These stocks are so cheap it’s ridiculous,” and we started to reduce our position in bullion and redivest into the market. If you look at what’s happened since that point in time, it’s been a good call. We’ve taken our bullion down to about 5% of the fund, and if you look at the stocks, year-to-date, we’re up 50%. If you look at gold bullion itself, in U.S. dollars, it’s up 5% to 10%. In Canadian dollars, I think it’s actually flat to down.

TGR: Well, that turned out to be a brilliant move. Let’s talk silver. Many people are saying silver is really going to run up faster than gold due to its increased volatility. Do you have any thoughts on silver, and is it a counter-hedge inflation play like gold?

JH: We like silver. We expect silver to move with the gold price. Obviously, silver is often viewed as poor man’s gold. Basically, it’s easier to buy in smaller quantities because it’s cheaper by the ounce and it’s easier to store for the smaller investor.

If we want to look at a cycle and break it up into thirds, during the first two-thirds of a gold cycle, as we see it, silver largely trades as an industrial commodity. But in the last one-third of a cycle, it tends to play catch-up to the gold price and close that silver-to-gold ratio. So, historically, if you go back to 1971 when gold really came off the gold standard and you look at that silver-to-gold ratio, the median has been about 55- or 56-to-1. If you go back to the 1980s, it’s hovered around 65- or 66-to-1. We got as high as, I believe, 81- or 82-to-1 in that gold-to-silver ratio, and now we’re back down to that 65-to-1 range. So, it depends on your viewpoint of how much movement you see in the silver price going forward. As we see the precious metals or gold price appreciate, we obviously expect silver to move along with that.

TGR: In the last third you would expect it to move faster than gold, but it would really be more of a spike?

CO: If you look at what’s happened in the last six months, silver has way outperformed gold. And I would say it’s now sort of getting to that point where it’s pretty close to fair value with gold under the models we’ve been running. So I am almost indifferent to owning either gold or silver right now, but silver’s momentum from the last six months is probably still with it somewhat. So, it could overshoot to the downside, but, again, I think I am largely indifferent at this current level.

TGR: Are there any other observations you’d like to convey to our readers who are precious metals investors, as we look across 2009?
CO: Last year was very tough—it really took a toll on all of us. I’ve got scars on my back to prove it still. What I want to say is continue to believe in that higher gold price because that it is going to come. I am still convinced of that. Keep the faith.

JH: I was going to make a comment along similar lines. You know there were a lot of people who, I think, were in a very similar cycle from 1965 to 1984. We’re experiencing that again, and we’re in the ’73 – ’76 volatile sideways market. A lot of people made significant money from that first gold move from $35 to over $180 an ounce. And then a lot of people lost the faith during the quantitative-easing phase in the sideways volatile market and got squeezed out of gold. Whether you believe in this conspiracy theory or not, gold was pushed down to $100—or just below a $100—an ounce and missed that last euphoric run from ’76 to the early ’80s.

So, as Charles said, I would keep the faith; don’t lose sight of the larger picture. Don’t lose sight of the quantitative easing and the debasement of currencies versus hard assets and real things, and you will do well going forward.

Disclaimer – I am not a financial advisor. This is not an advice to buy, sell or hold any stocks or bonds or any precious metals.

Judge Andrew Napolitano says: the players in Bank of America’s acquisition of Merrill Lynch should all be prosecuted for defrauding the shareholders of Bank of America…… Let us hope this not go away fast and the truth comes out.

Henry L. Niman of Recombinomics raises his concerns on the spread and mutation of A/H1N1 in the southern hemisphere. It is beginning to look like 1918 Spanish Flu all over again, crap!

Some hospitals began to strengthen measures, including the case of Posadas Hospital, one of the largest hospitals in the province of Buenos Aires that concentrates a large number of internees from the flu. Through a press release, the hospital reported that it declared a state of emergency by the Institution that “all staff will be available to the agency needs to be addressed” after the epidemic of influenza A.

In addition, the Posadas created through Resolution No. 640/09 an Internal Crisis Committee itself, with the aim of ensuring compliance and monitoring of the actions that the hospital must develop to deal with the situation posed by an outbreak of Influenza A .

Meanwhile, health authorities in Buenos Aires and Buenos Aires have some alternatives to strengthen the system, including the use of military hospital in Campo de Mayo, the release of bed in the hospital’s intensive care Malvinas Argentinas, the installation of sanitary units in campaign Buenos Aires and mobile primary care close to railway stations and Eleven Constitution.

The above translation describes the declaration of a medical emergency in Buenos Aires. The Buenos Aires Ministry of Health website lists15 confirmed fatalities, 180 confirmed cases, and 559 suspect cases as of Friday (see Buenos Aires map), but media reports suggest the actual number of cases is higher. Recent reports out of Argentina also described the rapid declineof relative young patients (15-50), with descriptions similar to those used to describe dying patients in 1918. In addition, there has been an outbreak of H1N1 at a pig farm northwest of Buenos Aires (see map).

The sudden jump in cases and fatalities are cause for concern. In the country the number of confirmed fatal cases rose to 27, but there are reports of 15 more fatalities that are suspect. There have also been reports of travelers from Argentina testing positive at airport checks in multiple countries. These travelers should provide multiple samples for sequencing studies to determine if there have been changes in the virus.

Recently PB2 E627K was reported in a traveler from the United States. However, the sequence suggested the change was acquired in China. Although the E627K was present in the original samples and confirmed in the initial clone, and subsequent sub-clone had reverted back to the wild type sequence, raising concerns that some key changes may not be stable under certain culture conditions, and important changes could be lost especially if the virus is cultured in chicken eggs, which could select against important changes associated with adaptation to human hosts.

Therefore, analysis by multiple labs of these sequences would be useful. The flu season is just beginning in the southern hemisphere, providing a favorable environment for rapid adaptive changes. The movement of a swine H1N1 into a human host parallels the 1918 pandemic, which also was associated with mild infections in the later spring, followed by a much more virulent and lethal H1N1 in the fall.

The rapid developments in Buenos Aires bear close scrutiny and active sequence analysis as H1N1 increases its gene pool transmitting through human hosts. Many countries worldwide, including those in the southern hemisphere are experiencing explosive growth, and the developments in Buenos Aires may signal a new wave of Pandemic H1N1.

Like genetically modified (GM) food, this is a stupid idea. There are just too many of these smart alacky scientists who think they can control nature. They think they understand all the ramifications far into the future. Remember DDT? See: Doctors Warn: Avoid Genetically Modified Food also.

Newsweek reports :Aedes Aegypti is a tricky enemy with a dangerous weakness for travel. Unlike other mosquitoes, it can survive the cold and thrives on city life. The increase of international trade and the accelerating pace of urbanization have broadened its horizon with grim consequences. The disease it carries, dengue fever—debilitating and sometimes lethal—is spreading fast. More than 100 million people in 100 countries are afflicted every year. Fatality rates can top 20 percent. There is no vaccine, no cure and no solution—none, at least, that conventional medicine can offer.

A new strategy involves a subtle reconfiguring of the bug’s DNA. Scientists working in labs near Oxford have devised a genetic modification that sterilizes the male Aedes, transforming the critter into his own worst enemy. He can still mate—but he can’t breed. Any offspring dies before becoming fully developed. The idea is to release a huge, all-conquering swarm of the doctored insects into the wild, let them find partners among the native females and wait for the mosquito population to decline. Preliminary trials, looking at both safety and effectiveness, have already taken place in Malaysia. Within a few years, the Franken-insects could be airborne.

The idea of GM mosquitoes was first floated 20 years ago. But it’s only recently gained the support of mainstream health officials. The Bill and Melinda Gates Foundation has invested $38 million into the research. In May, experts from around the world gathered in Geneva for a meeting sponsored by the World Health Organization to discuss progress and develop global guidelines for testing. Some environmental groups are alarmed at the development, and a confrontation looks certain. This is one they may lose. Unlike GM crops, whose benefits have more often gone to farmers, GM insects address a global health problem that causes great human suffering and death.

The practice of displacing pests with sterile mates has been common practice for 50 years. Every week, Guatemala, Mexico and the U.S. irradiate 2 billion male Mediterranean fruit flies before releasing them to search out mates. What’s new, of course, is the use of genetic manipulation instead of irradiation, which tends to leave Aedes too weak to pursue females. By slipping a single gene known as OX513, a composite partly derived from coral, into its DNA, British scientists believe they can doom any progeny beyond the larva stage.

To an eco-aware generation, already fearful of genetically modified food, any tinkering with the world’s delicately balanced ecosystems is unacceptable. “The inherent arrogance of believing that you can control the outcome is outrageous,” says Gillian Madill, a genetic-technologies campaigner at Friends of the Earth in Washington. Besides, the argument goes, malaria is already both preventable and curable without recourse to bolder and more risky tactics. A battery of effective drugs, notably artemisinin, is now available, and aid agencies have had success with bed nets drenched in insecticide.

Many rehearsals have been going on for the past few months. War drums are getting louder.

Press TV reports
The Israeli army has deployed its Mirkava tanks and personnel-carriers along the Lebanese border, Lebanon’s National News Agency says. The deployment took place on Thursday along the barb-wired fence which separates the Shebaa Farms from other parts of Lebanese territories.

Israeli tanks were also gathering along a 5-km area, stretching from the Tallat Sobaih army post to Mount Hermon while sporadic gunfire was also heard throughout the day, the agency reported.

The Israeli air force also carried out a number of flights over the Shebaa Farms, al-Arqoub villages, Hasbaya, Marjayoun, western Bekaa and Iqlim al-Tuffah.

Shebaa Farms comprises of a group of 14 farms close to the poorly-defined border of Lebanon and Syria. The farms were captured from Syria during the Six-Day Israeli War in 1967.

Lebanon says that Israel must leave the Shebaa Farms area, which it says lies on Lebanese territory while Israel contests this claim. Israel says that Shebaa is part of Syria’s territory and its fate should be discussed in future peace talks with Damascus.

Israeli Army amasses troops, military hardware along Lebanese borderBEIRUT: The Israeli Army stepped up its presence along the border with Lebanon deploying armored tanks and setting up fortifications as it intensified airspace violations in the area, Lebanon’s state-run National News Agency reported Thursday. In “unusual military activity,” the Israeli Army deployed Merkava tanks and soldier carriers, among other armored vehicles, along the barb-wired fence separating Shebaa Farms from liberated Lebanese territories, the NNA said.

Israeli tanks were also amassing along a 5-kilometer area, stretching from Tallat Sobaih army post to Jabal al-Sheikh observatory. Sporadic gunfire was also heard throughout the day, the NNA report said.

Meanwhile, the Israeli Air Force carried out several flights over the regions of the Shebaa Farms, Al-Arqoub villages, Hasbaya, Marjayoun, Western Bekaa and Iqlim al-Tuffah. Israeli helicopters were also spotted over the Shebaa Farms between 6 a.m. and 8:30 a.m.

On the outskirts of the southern village of Abassiya, the Israeli Army set up fortifications and barricades as part of a military workshop around Al-Dohaira post, off the town of Al-Ghajar. Heavy machinery was being used including bulldozers, drills and large cranes. A similar workshop was taking place at Jabal al-Sheikh’s observatory with soldiers setting up military equipment.

Things are moving rapidly in the gold market. Gold bugs used to be fazed by central bank gold sales or announcement of gold sales. These central banks manipulate the price of gold lower by selling gold, to protect the USD fiat currency hegemony. Their ‘threats’ of gold sales could only temporarily dampen the price of gold. With China actively announcing their plan to buy gold, no amount of gold sales will dampen its price. US$ 80B is just a drop in their US$2T of USD denominated assets.

First, it used to be that the threat of central bank gold sales would damage market sentiment. Now the threat of significant sales has been met with the threat of significant purchases.

Though the dragon hoard depicted by our good friend, Ed Stein is not yet a reality, China can back its desire to own gold with plenty of cold hard cash. At nearly $1.4 trillion in dollar-based assets, and almost $2 trillion in total reserves, $80 billion would consume a paltry 6% of China’s dollar reserves. At the same time 2600 tonnes translates to roughly one-third the U.S. gold reserve — a significant ambition by any measure. To give you an inkling of how this new synergy might work, when the International Monetary Fund announced recently it would like to sell about 400 tonnes of gold, China joined India in publicly pressing the IMF to sell its entire 3200 tonne hoard. On that news the gold market, which had been in a slow slide as a result of the IMF’s announcement, turned and took another run at the $1000 mark.

Second, by becoming gold’s most prominent champion, China mounts an aggressive defense of its domestic gold mining industry, and by proxy the rest of the industry as well.

Few people know that over the last few years China has quietly become the world’s leading gold producer. Most of that production never leaves China’s borders, but goes instead to the national reserves as a hedge against its currency holdings. China, by the simple expedient of defending its own interest, accomplishes much for the gold mining industry as a whole. By posing as a gold buyer of last resort, ready, willing and able to scoop up any sizable offer, China may have very well put a floor under the market price, though we are too early in the game at this juncture to predict what that price might be. There is no question, however, that China has put a floor under long term gold market expectations. One would have to go back to the first Central Bank Gold Agreement in 1999, which strictly limited the sale and leasing of central bank gold, to find an equivalent organized effort in defence of the long term price trend. Many feel that the original CBGA launched the current bull market in gold, and time will tell whether or not China’s bold entry onto the gold scene will launch its second leg.
…..Third, by elevating gold to prominence in its national reserves, China lays the groundwork for the yuan’s future use as a prominent reserve currency.

There is little doubt that China would like to make the yuan the currency of choice in the East and a strong measure of gold in its reserves would do much to enhance that possibility. For a comparative history, one would have to go all the way back to the late 1960s and the time of French president Charles DeGaulle. “The Last Great Frenchman” thought it best to hedge the national interest and elevate its future economic prospects by purchasing gold. A substantial amount of metal subsequently left U.S. coffers for European national balance sheets including that of France. DeGaulle was later vindicated when gold rose twenty five times in dollar terms over a short ten year period from $35 an ounce to $875 (1971 to 1980). Some of that same gold would later play a key role in the establishment of the European Union, the European Central Bank and the euro, Europe’s currency. China, by its recent actions, appears to have similar intentions both in terms of gold and the yuan.

In one fell swoop China has done much to alter the standing gold market synergy. When Congressman Mark Kirk announced China’s desire to purchase gold during an interview with Fox News’ Greta van Sustern, he noted “across across the board – in private – substantial, continuing and rising concern.” Chinese leaders, he added, were sharply critical in private of the US Federal Reserve’s policy of “quantitative easing,” the modern equivalent of printing money. Kirk went on to say that rising concerns about the dollar and anticipated inflation had prompted China to: “[fund] a second strategic petroleum reserve and they plan to buy $80 billion worth of gold. . . Both of those investments only make sense if you expect significant dollar inflation.”

In the years to come, China will continue to steadily build its gold reserves through domestic production. It will also attempt to purchase whatever gold it can on the world market through official sector purchases or whatever additional means it finds at its disposal. In the process it will become the fire-breathing dragon in the gold market’s living room – ubiquitous and formidable, a presence that cannot be ignored. At the same time, it will find itself in stiff competition for the available physical gold with an international public which harbors the very same concerns for their own portfolios that Chinese officials expressed to Representative Kirk. Few among gold’s growing legions would disagree with China’s logic, or its now publicly voiced desire to hedge a potentially disastrous collapse of the dollar.

Disclaimer – I am not a financial advisor. This is not an advice to buy, sell or hold any stocks or bonds or any precious metals.

Gold is completing its consolidation and is about to move much higher. Very much higher! Roger Wiegand provides an excellent technical analysis :

Longer term charts tell the tale and block out daily trading noise. This weekly chart with a hugely bullish, inverted head and shoulders forecasts a major gold buying event later this year. This would be consistent with our forecasts of smashed stock markets after Labor Day 2009. We cannot tell for certain how high the Dow and the S&P 500 might recover between now and September 15th. We do know this: Numerous information, technical interpretations, and other data signal a largely broken fall, 2009 stock market and a corresponding rally in precious metals. This is our prediction.

We’ve all been patiently waiting for gold to breakout through strong resistance levels between $1,007 and $1,032. When the price has closed firmly and decisively over $1,032.50, we should expect $1,050, $1,150, $1,250-$1,260 and a potential for $1,375. These have been our previous gold price support and resistance forecasts expected for the December, 2009 futures contract highs.

It is very important to understand that once these higher numbers are achieved it is not the end of this gold rally.Rather, once new loftier highs are posted and reasonably held, we should see a new and higher sequence of buying. Our very old gold high forecast of years ago was $2,960. As of today, we hold on that forecast for a minimum but are in fact expecting prices way beyond this figure.

As markets move forward and post higher highs in certain commodities and especially gold and silver, we can technically determine what’s next. Somewhere along the trading trail in the next few months, precious metals shares will breakaway from the influence and attachment of other stock markets. We are not there yet but we have seen some tiny signals telling us this is coming.

Should gold be inflation adjusted today to its proper price, gold would exceed $2,250 in our view. If we say our minimum is $2,960, these two correlated prices are not all that far apart. What I want to figure out next is; where is gold going after $2,960? This can be determined when other related new market prices and techncials are established in crude oil, credit, silver, and grains.

When gold goes on a rocket-rally, silver being more volatile will amaze on the upside. There should be no surprise that silver has some futures trading limit-up days in the months ahead. Despite worries by some silver analysts (including us) that silver might smother under the weight of dying commercial depression effects, we say silver changes itself from a mostly industrial metal into a newly recognized currency. We have seen some smaller, sympathetic communities using silver “rounds” or commemorative coins for local trading and commerce.

Disclaimer – I am not a financial advisor. This is not an advice to buy, sell or hold any stocks or bonds or any precious metals.

In the above video clips, after an introduction by Alex Jones, women of the Akha tribe who live predominately in Thailand, describe how they miscarried shortly after taking vaccines when they were eight months pregnant. The videos below highlight the efforts of supporters of the Akha tribe to get answers from the University of Oregon and the United Nations, who provided funding for the vaccination and sterilization programs.

Further evidence of the link between vaccinations, birth control, cancer and other diseases can be researched here. In the 21st century, the eugenics movement has changed its stripes once again, manifesting itself through the global carbon tax agenda and the notion that having too many children or enjoying a reasonably high standard of living is destroying the planet through global warming, creating the pretext for further regulation and control over every facet of our lives.

As we have tirelessly documented, the elite’s drive for population control is not based around a benign philanthropic urge to improve living standards, it is firmly routed in eugenics, racial hygiene and fascist thinking.

The London Times reports that the secret billionaire cabal, with its interest in population reduction, has been dubbed ‘The Good Club’ by insiders. This couldn’t be further from the truth. Anyone who takes the time to properly research the origins of the “population control” movement will come to understand that the Rockefeller-Turner-Gates agenda for drastic population reduction, which is now clearly manifesting itself through real environmental crises like chemtrails, genetically modified food, tainted vaccines and other skyrocketing diseases such as cancer, has its origins in the age-old malevolent elitist agenda to cull the human “chattel” as one would do to rodents or any other species deemed a nuisance by the central planning authorities.

Sterilization And Eugenics Returns In Popular CultureWe are now seeing the return of last century’s eugenicist movement through the popular promotion of sterilization as a method of birth control.

A popular women’s magazine in the UK recently featured an article entitled, Young, Single and Sterilized, in which women in their 20’s discussed why they had undergone an operation to prevent them from ever having children. The article is little more than PR for a “women’s charity” called Marie Stopes International, an organization that carries out abortions and sterilizations and was founded by a Nazi eugenicist who advocated compulsory sterilization of non-whites and “those of bad character”.

In the article, sterilization is lauded as an “excellent method of birth control” by Dr. Patricia Lohr of the British Pregnancy Advisory Service. The article includes an advertisement that encourages women to seek “more information about sterilization” by contacting Marie Stopes International. We read that, “Over the past year, a quarter of the women who booked a sterilisation consultation with women’s charity Marie Stopes were aged 30 or under.”

Marie Stopes was a feminist who opened the first birth control clinic in Britain in 1921 as well as being Nazi sympathizer and a eugenicist who advocated that non-whites and the poor be sterilized.

Stopes, a racist and an anti-Semite, campaigned for selective breeding to achieve racial purity, a passion she shared with Adolf Hitler in adoring letters and poems that she sent the leader of the Third Reich.

Stopes also attended the Nazi congress on population science in Berlin in 1935, while calling for the “compulsory sterilization of the diseased, drunkards, or simply those of bad character.” Stopes acted on her appalling theories by concentrating her abortion clinics in poor areas so as to reduce the birth rate of the lower classes.

Stopes left most of her estate to the Eugenics Society, an organization that shared her passion for racial purity and still exists today under the new name The Galton Institute. The society has included members such as Charles Galton Darwin (grandson of the evolutionist), Julian Huxley and Margaret Sanger.

Ominously, The Galton Institute website promotes its support and funding initiative for “the practical delivery of family planning facilities, especially in developing countries.” In other words, the same organization that once advocated sterilizing black people to achieve racial purity in the same vein as the Nazis is now bankrolling abortions of black babies in the third world.

While the issue of abortion is an entirely different argument, most would agree that no matter how extreme it sounds, a woman has the right to sterilize herself if she so chooses, just as a man has the right to a vasectomy.

But when a magazine aimed primarily at young women all but encourages girls as young as 20 to have their fallopian tubes tied in order to prevent the “irritation” of children entering their lives and then advertises an organization founded by a Nazi eugenicist that can perform the operation, something has to be amiss.

Even more shocking than this is the fact that the majority of people in the UK routinely express their support for society’s “undesirables” to be forcibly sterilized by the state, harking back to a time when such a thing was commonplace right up to the 1970’s in some areas of America and Europe.

As we highlighted at the time, respondents to a Daily Mail article about Royal Mail honoring Marie Stopes by using her image on a commemorative stamp were not disgusted at Royal Mail for paying homage to a racist Nazi eugenicist, but were merely keen to express their full agreement that those deemed not to be of pure genetic stock or of the approved character should be forcibly sterilized and prevented from having children.

“A lot of people should be sterilized, IMO. It’s still true today,” wrote one. “Just imagine what a stable, well-ordered society we’d have if compulsory sterilisation had been adopted years ago for the socially undesirable,” states another respondent, calling for a “satellite-carried sterilisation ray” to be installed in space to zap the undesirables.

Shockingly, another compares sterilization and genocide of those deemed inferior to the breeding and culling of farmyard animals, and says that such a move is necessary to fight overpopulation and global warming. Here is the comment in full from “Karen” in Wales;

We breed farm animals to produce the best possible stock and kill them when they have fulfilled their purpose. We inter-breed pedigree animals to produce extremes that leave them open to ill-health and early death. It is only religion that says humans are not animals. The reality is that we are simply intelligent, mammalian primates.

The world population of humans has increased from 2 billion to 6.5 billion in the last 50 years. This planet can support 2 billion humans comfortably. 6.5 billion humans use too many resources and leads to global warming, climate change and a very uncertain future for all of us – humans and all other life sharing this planet with us.

Marie Stopes believed in population control and in breeding the best possible humans. So did Hitler. Neither of the aims are bad in themselves. It is how they are achieved that is the problem. The fact that we still remember Marie Stopes is an achievement in itself.

The nature of these comments is so fundamentally sick and twisted that one is tempted to dismiss them as a joke – but these people are deadly serious. Presumably they would also agree with China’s one child policy, which is routinely enforced by intimidation as young pregnant women are grabbed off the streets by state goons and taken to hospitals where forced abortions are carried out.

Now with popular women’s magazines advising women in their 20’s where they can go to be sterilized and ensure a lifetime of partying and carefree sex, it’s no surprise that experts predict that by 2010 one in four western women will be child free for life.

The yearning to have children is the most beautiful, natural and innate emotion either a man or a woman can possibly experience. That is not to say that it’s always wrong for some people not to have children – extreme circumstances can justify such a decision. But to have yourself sterilized because you find children to be an “irritant” and want to live a life free of responsibility or consequences is an awful message to send to young women, especially in the sex-saturated entertainment culture that we are now forced to endure.

Furthermore, the outright promotion of Marie Stopes International as ‘the place to go’ to get sterilized if you’re under 30 is stomach-churning considering the fact that the origins of this organization can be found in Nazi ideology, racist and backward early 20th century eugenics and a long-standing agenda to cull the population of undesirables, an abhorrent belief still held by elites across the planet today.

Few people seem to realize this. Most cannot accept that there is a Illuminati Satanic ruling elite that wants to bring global population down massively. What is this manufactured A/H1N1 swine flu about? You guessed it! Paul J. Watson provides the evidence:The World’s Elite Are Discussing Population ReductionAs was reported only last month by the London Times, a “secret billionaire club” meeting in early May which took place in New York and was attended by David Rockefeller, Ted Turner, Bill Gates and others was focused around “how their wealth could be used to slow the growth of the world’s population”.

We questioned establishment media spin which portrayed the attendees as kind-hearted and concerned philanthropists by pointing out that Ted Turner has publicly advocated shocking population reduction programs that would cull the human population by a staggering 95%. He has also called for a Communist-style one child policy to be mandated by governments in the west. In China, the one child policy is enforced by means of taxes on each subsequent child, allied to an intimidation program which includes secret police and “family planning” authorities kidnapping pregnant women from their homes and performing forced abortions.

Of course, Turner completely fails to follow his own rules on how everyone else should live their lives, having five children and owning no less than 2 million acres of land.

The notion that these elitists merely want to slow population growth in order to improve health is a complete misnomer. Slowing the growth of the world’s population while also improving its health are two irreconcilable concepts to the elite. Stabilizing world population is a natural byproduct of higher living standards, as has been proven by the stabilization of the white population in the west. Elitists like David Rockefeller have no interest in “slowing the growth of world population” by natural methods, their agenda is firmly rooted in the pseudo-science of eugenics, which is all about “culling” the surplus population via draconian methods.

David Rockefeller’s legacy is not derived from a well-meaning “philanthropic” urge to improve health in third world countries, it is born out of a Malthusian drive to eliminate the poor and those deemed racially inferior, using the justification of social Darwinism.

As is documented in Alex Jones’ seminal film Endgame, Rockefeller’s father, John D. Rockefeller, exported eugenics to Germany from its origins in Britain by bankrolling the Kaiser Wilhelm Institute which later would form a central pillar in the Third Reich’s ideology of the Nazi super race. After the fall of the Nazis, top German eugenicists were protected by the allies as the victorious parties fought over who would enjoy their “expertise” in the post-war world.

As Dr. Len Horowitz writes, “In the 1950s, the Rockefellers reorganized the U.S. eugenics movement in their own family offices, with spinoff population-control and abortion groups. The Eugenics Society changed its name to the Society for the Study of Social Biology, its current name.”

“The Rockefeller Foundation had long financed the eugenics movement in England, apparently repaying Britain for the fact that British capital and an Englishman-partner had started old John D. Rockefeller out in his Oil Trust. In the 1960s, the Eugenics Society of England adopted what they called Crypto-eugenics, stating in their official reports that they would do eugenics through means and instruments not labeled as eugenics.”

“With support from the Rockefellers, the Eugenics Society (England) set up a sub-committee called the International Planned Parenthood Federation, which for 12 years had no other address than the Eugenics Society. This, then, is the private, international apparatus which has set the world up for a global holocaust, under the UN flag.”

In the latter half of the 20th century, eugenics merely changed its face to become known as “population control”. This was crystallized in National Security Study Memorandum 200, a 1974 geopolitical strategy document prepared by Rockefeller’s intimate friend and fellow Bilderberg member Henry Kissinger, which targeted thirteen countries for massive population reduction by means of creating food scarcity, sterilization and war.

The document, declassified in 1989, identified 13 countries that were of special interest to U.S. geopolitical objectives and outlined why population growth, and particularly that of young people who were seen as a revolutionary threat to U.S. corporations, was a potential roadblock to achieving these objectives. The countries named were India, Bangladesh, Pakistan, Nigeria, Mexico, Indonesia, Brazil, the Philippines, Thailand, Egypt, Turkey, Ethiopia and Colombia.

The study outlined how civil disturbances affecting the “smooth flow of needed materials” would be less likely to occur “under conditions of slow or zero population growth.”

“Development of a worldwide political and popular commitment to population stabilization is fundamental to any effective strategy. This requires the support and commitment of key LDC leaders. This will only take place if they clearly see the negative impact of unrestricted population growth and believe it is possible to deal with this question through governmental action,” states the document.

The document called for integrating “family planning” (otherwise known as abortion) with routine health services for the purposes of “curbing the numbers of LDC people,” (lesser-developed countries).

The report shockingly outlines how withholding food could be used as a means of punishment for lesser-developed countries who do not act to reduce their population, essentially using food as a weapon for a political agenda by creating mass starvation in under-developed countries.

“The allocation of scarce PL480 (food) resources should take account of what steps a country is taking in population control as well as food production,” states the document.

Later in the document, the idea of enforcing “mandatory programs” by using food as “an instrument of national power” is presented. The document states that the program will be administered through the United Nations Fund for Population Activities (UNFPA), thereby “avoiding the danger that some LDC leaders will see developed-country pressures for family planning as a form of economic or racial imperialism; this could well create a serious backlash.”

As Jean Guilfoyle writes, “NSSM 200 was a statement composed after the fact. During the late 1960s and early 1970s, the U.S. had worked diligently behind the scenes to advance the population-control agenda at the United Nations, contributing the initial funding of $1 million.

A Department of State telegram, dated July 1969, reported the support of John D. Rockefeller III, among others, for the appointment of Rafael Salas of the Philippines as senior officer to co-ordinate and administer the UN population program. The administrator of the UN Development Program reported confidentially that he preferred someone such as Salas who had the “advantage of color, religion (Catholic) and conviction.”

A comprehensive outline of what is contained in the National Security Memorandum document can be read at http://www.theinterim.com/july98/20nssm.html
Evidence of the actual consequences of this program can be found with the link between vaccines and sterilization, as well as other diseases such as cancer, in both the west and the third world.

The attacks are getting louder. I wonder whether the BRIC and SCO countries are executing their plan to bust the USD? Bloomberg reports :

China’s central bank renewed its call for a new global currency and said the International Monetary Fund should manage more of members’ foreign-exchange reserves, triggering a decline in the U.S. dollar.

“To avoid the inherent deficiencies of using sovereign currencies for reserves, there’s a need to create an international reserve currency that’s delinked from sovereign nations,” the People’s Bank of China said in its 2008 review released today. The IMF should expand the functions of its unit of account, Special Drawing Rights, the report said.

The restatement of Governor Zhou Xiaochuan’s proposal in March added to speculation that China will diversify its currency reserves, the world’s largest at more than $1.95 trillion. Chinese investors, the biggest foreign owners of U.S. Treasuries, reduced holdings by $4.4 billion in April to $763.5 billion after Premier Wen Jiabao expressed concern about the value of dollar assets. That reduction came a month after China boosted its holdings by $23.7 billion to a record.

“Zhou Xiaochuan sees the current international financial system is flawed, putting too much emphasis on the dollar as a reserve currency,” said Kevin Lai, an economist with Daiwa Institute of Research in Hong Kong.

President Barack Obama needs the support of China as the U.S. tries to spend its way out of recession. The Dollar Index that measures the currency’s performance against six trading partners fell as much as 0.8 percent to 79.779 at 1:11 p.m. in London. U.S. Treasuries were little changed with the 10-year yield at 3.53 percent.
…..
At the end of 2008 the dollar accounted for 64 percent of global central bank reserves, down from 73 percent in 2001, according to the IMF in Washington.
…..Diversifying HoldingsChina has started to pare its holdings, trimming them by $4.4 billion to $763.5 billion in April, the first monthly reduction since February 2008, according to U.S. Treasury Department data. Figures for May have yet to be released.

“There may be signs here of tensions mounting between the PBOC’s economic concerns over China’s holdings of dollars and the Chinese government’s diplomatic reasons for doing so,” Stephen Gallo, head of market analysis at Schneider Foreign Exchange in London, wrote in an e-mail.

Russian President Dmitry Medvedev, Chinese President Hu Jintao, Indian Prime Minister Manmohan Singh and Brazilian President Luiz Inacio Lula da Silva called for a “more diversified” monetary system to reduce dependency on the greenback at a June 16 meeting in the Russian city of Yekaterinburg. In May, China and Brazil began studying a proposal to move away from the dollar and use yuan and reais to settle trade instead.

Group of 20
Group of 20 leaders on April 2 gave approval for the IMF to raise $250 billion by issuing Special Drawing Rights, or SDRs, the artificial currency that the agency uses to settle accounts among its member nations. It also agreed to put another $500 billion into the IMF’s war chest. This month, Russia and Brazil announced plans to buy $20 billion IMF bonds, while China said it is considering purchasing $50 billion.

“Special drawing rights of the IMF should be given full play, and the international body should manage part of its members’ reserves,” the central bank report said.

IMF First Deputy Managing Director John Lipskysaid on June 6 it’s possible to take the “revolutionary” step of making SDRs a reserve currency over time.

SDRs were created by the IMF in 1969 to support the Bretton Woods exchange-rate system that collapsed in 1971. They act as a unit of account rather than a currency. The cash is disbursed in proportion to the money each member nation pays into the fund.

Widening the BasketThe value of SDRs are based on a basketof currencies, shielding them from swings in a single currency. One SDR is valued at $1.54. China is proposing the basket be broadened. The current weighting is: 44 percent for the dollar, 34 percent for the euro and 11 percent each for the yen and the pound. It doesn’t include the yuan.

The dollar’s dominance of global finance buffeted developing nations last year. Investors abandoned emerging markets after the September bankruptcy of Lehman Brothers Holdings Inc. eliminated demand for all but the safest, most easily traded assets, such as Treasuries and the dollar. A shortage of the U.S. currency forced central banks to pump reserves into their economies.

“The excessive reliance on the credit of several sovereign currencies have added to the extent of risks and crises,” the central bank report said. “A currency with stable value in the long term is required.”

China is already buying gold and a lot of commodities to dispose of their US$2T in USD denominated assets. What this senior researcher says is just the obvious official line. It is like a poker game. You only show the cards you want your opponents to see. So what other steps have they taken or are taking to protect themselves? The Chinese are bracing themselves for a collapse of the USD. Reuters reports :
China should buy more gold because the dollar is poised for a fall and the metal is needed to support the greater international role envisaged for the yuan, a senior researcher with the ruling Communist Party said on Thursday.

Li Lianzhong, who heads the economic department of the Party’s policy research office, said China should use more of its $1.95 trillion in foreign exchange reserves to buy energy and natural resource assets.

Speaking at a foreign exchange and gold forum, Li also said that buying land in the United States was a better option for China than buying U.S. Treasury securities. ‘Should we buy gold or U.S. Treasuries?’ Li asked. ‘The U.S. is printing dollars on a massive scale, and in view of that trend, according to the laws of economics, there is no doubt that the dollar will fall. So gold should be a better choice.’

There is no suggestion that Li, even though he is a senior researcher, was enunciating an agreed party line. However, a debate is swirling in China about how the country can reduce its exposure to the dollar and to U.S. assets in case America’s ultra-loose fiscal and monetary policy rekindles inflation and erodes the value of the dollar and U.S. Treasuries.

To that end, China has said it will buy up to $50 billion worth of bonds denominated in Special Drawing Rights, the International Monetary Fund’s unit of account, to be issued by the IMF.

Chinese companies, at Beijing’s bidding, are also snapping up energy and commodity supplies around the globe to fuel its fast-growing growing economy.

China disclosed on April 24 that it had increased its holdings of gold to 1,054 tonnes from 600 tonnes since 2003. However, China’s foreign exchange reserves have grown so fast over the same period that gold’s share of the stockpile, the largest in the world, has shrunk.

Li cited the high share of gold in the foreign exchange reserves of the United States, Italy, Germany and France, to argue that China’s gold holdings, which account for about 1.6 percent of its reserves, are too small.

REFORMING THE SDRChina does not disclose the composition of its currency reserves, but bankers assume around 70 percent of it is held in dollar assets. China is the largest single holder of U.S. Treasuries, with $763.5 billion at the end of April, according to U.S. Treasury data..

Analysts say this data set understates the true number as it does not capture paper bought through dealers in London or elsewhere. Li said a second reason for buying more gold would be in anticipation of the yuan one day becoming a reserve currency.

The yuan is not convertible on the capital account, meaning it cannot be freely traded for other currencies for financial transactions that are not related to trade.

This rules out the yuan’s use as an international reserve currency, for central banks would not be able to convert it quickly if necessary. But, in a very preliminary step towards that goal, China is paving the way for greater use of the yuan beyond its borders.

The People’s Bank of China has arranged currency swap deals with six countries since December totalling 650 billion yuan ($95 billion) so that trade and investment with China can be conducted in yuan, not dollars. And China will soon allow selected firms in the southern province of Guangdong that trade with Hong Kong to settle their transactions in yuan, or renminbi.

‘If the yuan should go international or become a reserve currency, China needs more gold to back that,’ Li said. When the yuan does become an international currency, which Li acknowledged was a long way off, he said the composition of the SDR should be reformed to include the Chinese currency.

Ideally, in the long term, the SDR would be made up of the dollar, euro, sterling and yen and yuan, each with a weighting of 20 percent, Li said. The SDR is currently made up of the dollar (with a weighting of 44 percent), the euro (34 percent), the yen (11 percent) and sterling (11 percent)

The four currencies in the SDR, which must be convertible, are those issued by Fund members with the largest share of global trade. The weights assigned by the IMF are based on the value of exports and the amount of reserves denominated in those currencies.

The composition of the basket is reviewed every five years. the next review is due in 2010.

As the anticipated July release date for Baxter’s A/H1N1 flu pandemic vaccine approaches, an Austrian investigative journalist is warning the world that the greatest crime in the history of humanity is underway. Jane Burgermeister has recently filed criminal charges with the FBI against the World Health Organization (WHO), the United Nations (UN), and several of the highest ranking government and corporate officials concerning bioterrorism and attempts to commit mass murder. She has also prepared an injunction against forced vaccination which is being filed in America. These actions follow her charges filed in April against Baxter AG and Avir Green Hills Biotechnology of Austria for producing contaminated bird flu vaccine, alleging this was a deliberate act to cause and profit from a pandemic.

Summary of claims and allegations filed with FBI in Austria on June 10, 2009In her charges, Burgermeister presents evidence of acts of bioterrorism that is in violation of U.S. law by a group operating within the U.S. under the direction of international bankers who control the Federal Reserve, as well as WHO, UN and NATO. This bioterrorism is for the purpose of carrying out a mass genocide against the U.S. population by use of a genetically engineered flu pandemic virus with the intent of causing death. This group has annexed high government offices in the U.S.

Specifically, evidence is presented that the defendants, Barack Obama, President of the U.S, David Nabarro, UN System Coordinator for Influenza, Margaret Chan, Director-General of WHO, Kathleen Sibelius, Secretary of Department of Health and Human Services, Janet Napolitano, Secretary of Department of Homeland Security, David de Rotschild, banker, David Rockefeller, banker, George Soros, banker, Werner Faymann, Chancellor of Austria, and Alois Stoger, Austrian Health Minister, among others, are part of this international corporate criminal syndicate which has developed, produced, stockpiled and employed biological weapons to eliminate the population of the U.S. and other countries for financial and political gain.

The charges contend that these defendants conspired with each other and others to devise, fund and participate in the final phase of the implementation of a covert international bioweapons program involving the pharmaceutical companies Baxter and Novartis. They did this by bioengineering and then releasing lethal biological agents, specifically the “bird flu” virus and the “swine flu virus” in order to have a pretext to implement a forced mass vaccination program which would be the means of administering a toxic biological agent to cause death and injury to the people of the U.S. This action is in direct violation of the Biological Weapons Anti-terrorism Act.

Burgermeister’s charges include evidence that Baxter AG, Austrian subsidiary of Baxter International, deliberately sent out 72 kilos of live bird flu virus, supplied by the WHO in the winter of 2009 to 16 laboratories in four counties. She claims this evidence offers clear proof that the pharmaceutical companies and international government agencies themselves are actively engaged in producing, developing, manufacturing and distributing biological agents classified as the most deadly bioweapons on earth in order to trigger a pandemic and cause mass death.

In her April charges, she noted that Baxter’s lab in Austria, one of the supposedly most secure biosecurity labs in the world, did not adhere to the most basic and essential steps to keep 72 kilos of a pathogen classified as a bioweapon secure and separate from all other substances under stringent biosecurity level regulations, but it allowed it to be mixed with the ordinary human flu virus and sent from its facilities in Orth in the Donau.

In February, when a staff member at BioTest in the Czech Republic tested the material meant for candidate vaccines on ferrets, the ferrets died. This incident was not followed up by any investigation from the WHO, EU, or Austrian health authorities. There was no investigation of the content of the virus material, and there is no data on the genetic sequence of the virus released.

In answer to parliamentary questions on May 20th, the Austrian Health Minister, Alois Stoger, revealed that the incident had been handled not as a biosecurity lapse, as it should have been, but as an offence against the veterinary code. A veterinary doctor was sent to the lab for a brief inspection.

Burgermeister’s dossier reveals that the release of the virus was to be an essential step for triggering a pandemic that would allow the WHO to declare a Level 6 Pandemic. She lists the laws and decrees that would allow the UN and WHO to take over the United States in the event of pandemic. In addition, legislation requiring compliance with mandatory vaccinations would be put into force in the U.S. under conditions of pandemic declaration.

She charges that the entire “swine flu” pandemic business is premised on a massive lie that there is no natural virus out there that poses a threat to the population. She presents evidence leading to the belief that the bird flu and swine flu viruses have, in fact, been bioengineered in laboratories using funding supplied by the WHO and other government agencies, among others. This “swine flu” is a hybrid of part swine flu, part human flu and part bird flu, something that can only come from laboratories according to many experts.

WHO’s claim that this “swine flu” is spreading and a pandemic must be declared ignores the fundamental causes. The viruses that were released were created and released with the help of WHO, and WHO is overwhelmingly responsible for the pandemic in the first place. In addition, the symptoms of the supposed “swine flu” are indistinguishable from regular flu or from the common cold. The “swine flu” does not cause death anymore often than the regular flu causes death.

Burgermeister notes that the figures for deaths reported for the “swine flu” are inconsistent and there is no clarity as to how the number of “deaths” has been documented.

There is no pandemic potential unless mass vaccinations are carried out to weaponize the flu under the guise of protecting the population. There are reasonable grounds for believing that the mandatory vaccines will be purposely contaminated with diseases that are specifically designed to cause death.

Reference is made to a licensed Novartis bird flu vaccine that killed 21 homeless people in Poland in the summer of 2008 and had as its “primary outcome measure” an “adverse events rate”, thereby meeting the U.S. government’s own definition of a bioweapon (a biological agent designed to cause an adverse events rate, i.e death or injury) with a delivery system (injection).

She alleges that the same complex of international pharmaceutical companies and international government agencies that have developed and released pandemic material have positioned themselves to profit from triggering the pandemic with contracts to supply vaccines. Media controlled by the group that is engineering the “swine flu” agenda is spreading misinformation to lull the people of the U.S. into taking the dangerous vaccine.

The people of the U.S. will suffer substantial and irreparable harm and injury if they are forced to take this unproven vaccine without their consent in accordance with the Model State Emergency Health Powers Act, National Emergency Act, National Security Presidential Directive/NSPD 51, Homeland Security Presidential Directive/HSPD-20, and the International Partnership on Avian and Pandemic Influenza.

In the U.S. since 2008, Burgermeister charges that those named in her allegations have implemented new and/or accelerated the implementation of laws and regulations designed to strip the citizens of the U.S. of their lawful constitutional rights to refuse an injection. These people have created or allowed provisions to remain in place that make it a criminal act to refuse to take an injection against pandemic viruses. They have imposed other excessive and cruel penalties such as imprisonment and/or quarantine in FEMA camps while barring the citizens of the U.S. from claiming compensation from injury or death from the forced injections. This is in violation of the laws governing federal corruption and the abuse of office as well as of the Constitution and Bill of Rights. Through these actions, the named defendants have laid the groundwork for mass genocide.

Using the “swine flu” as a pretext, the defendants have preplanned the mass murder of the U.S. population by means of forced vaccination. They have installed an extensive network of FEMA concentration camps and identified mass grave sites, and they have been involved in devising and implementing a scheme to hand power over the U.S. to an international crime syndicate that uses the UN and WHO as a front for illegal racketeering influenced organized crime activities, in violation of the laws that govern treason.

She further charges that the complex of pharmaceutical companies consisting of Baxter, Novartis and Sanofi Aventis are part of a foreign-based dual purpose bioweapons program, financed by this international criminal syndicate and designed to implement mass murder to reduce the world’s population by more than 5 billion people in the next ten years. Their plan is to spread terror to justify forcing people to give up their rights, and to force mass quarantine in FEMA camps. The houses, companies and farms and lands of those who are killed will be up for grabs by this syndicate.

By eliminating the population of North America, the international elite gain access to the region’s natural resources such as water and undeveloped oil lands. And by eliminating the U.S. and its democratic constitution by subsuming it under a North American Union, the international crime group will have total control over North America.

Highlights from the complete dossierThe complete dossier of the June 10th action is a 69 page document presenting evidence to substantiate all charges. This includes:

Factual background that delineates time lines and facts that establish probable cause, UN and WHO definitions and roles, and history and incidents from the April, 2009 “swine flu” outbreak.

Evidence the “swine flu” vaccines are defined as bioweapons as delineates in government agencies and regulations classifying and restricting vaccines, and the fear of foreign countries that “swine flu” vaccines will be used for biological warfare.

The genome sequence of the “swine flu”
Evidence of the deliberate release of the “swine flu” in Mexico
Evidence as to the involvement of President Obama that delineates his trip to Mexico which coincided with the recent “swine flu” outbreak and the death of several officials involved in his trip. Contention is made that the President was never tested for “swine flu” because he had been previously vaccinated.

Evidence as to the role of Baxter and WHO in producing and releasing pandemic virus material in Austria includes a statement from a Baxter official stating the accidentally distributed H5N1 in the Czech Republic was received from a WHO reference center. This includes delineation of evidence and allegations from Burgermeister’s charges filed in April in Austria that are currently under investigation.

Evidence Baxter is an element in a covert bioweapons network
Evidence Baxter has deliberately contaminated vaccine material.
Evidence Novartis is using vaccines as bioweapons
Evidence as to WHO’s role in the bioweapons program
Evidence as to WHO’s manipulation of disease data in order to justify declaring a Pandemic Level 6 in order to seize control of the USA.
Evidence as to the FDA’s role in covering up the bioweapons program
Evidence as to Canada’s National Microbiology Lab’s role in the bioweapons program.
Evidence of the involvement of scientists working for the UK’s NIBSC, and the CDC in engineering the “swine flu”.
Evidence vaccinations caused the Spanish killer flu of 1918 including belief of Dr. Jerry Tennant that the widespread use of aspirin during the winter that followed the end of World War I could have been a key factor contributing to the earlier pandemic by suppressing the immune system and lowering body temperatures, allowing the flu virus to multiply. Tamiflu and Relenza also lower body temperatures, and therefore can also be expected to contribute to the spread of a pandemic.

Evidence as to manipulation of the legal framework to allow mass murder with impunity.

Constitutional issues: the legality vs. illegality of jeopardizing the life, health and public good by mass vaccinations. The issue of immunity and compensation as evidence of intent to commit a crime.

Evidence as to the existence of an international corporate crime syndicate.
Evidence of the existence of the “Illuminati”.
Evidence as to the depopulation agenda of the Illuminati/Bilderbergs and their involvement in the engineering and release of the artificial “swine flu” virus.

Evidence that weaponized flu was discussed at the annual Bilderberg meeting in Athens from May 14-17, 2009, as part of their agenda of genocide, including a list of attendees who, according to a statement once made by Pierre Trudeau, view themselves as genetically superior to the rest of humanity.

Media is keeping Americans clueless about the threat they are underJane Burgermeister is a dual Irish/Austrian who has written for Nature, the British Medical Journal, and American Prospect. She is the European Correspondent of the Renewable Energy World website. She has written extensively about climate change, biotechnology, and the ecology.

In addition to the charges currently under investigation that she filed against Baxter AG and Avir Green Hills Biotechnology in April, she has filed charges against WHO and Baxter among others concerning a case of exploding “swine flu” vials meant for a research lab on a busy IC train in Switzerland.

In her view, control of the media by the ruling elite has allowed the world crime syndicate to further its agenda unabated while the rest of the people remain in the dark about what is really going on. Her charges are an attempt to get around this media control and bring the truth to light.

Her greatest concern is that “in spite of the fact Baxter has been caught red handed nearly triggering pandemic, they are also moving ahead, together with allied pharma companies, with supplying the vaccine for pandemics.” Baxter is hurrying to get this vaccine to market some time in July.

No surprise to me. I still believe it is a bio-engineered weapon. Wayne Madsen reports :

WMR previously reported on the genetic manipulation of the 1918 flu from tissue extracted from an Inuit woman who died from the pandemic in Alaska. On May 6, WMR reported: “WMR has obtained information from biological researchers that the 1918 Spanish flu genetic sequences were ‘manipulated’ in order to effect transmission capability.

The current H1N1 virus, called ‘swine flu,’ is reportedly a combination of two forms of human flu, two forms of swine flu (North American and Eurasian), and avian or bird flu . . . Two bio-safety laboratories have been associated with the genetic reverse engineering of not only A-H1N1, the current ‘swine flu’ strain, but also the deadly Ebola virus. They are the University of Wisconsin-Madison and the National Microbiology Laboratory in Winnipeg, Canada.”

WMR has now learned from virus researchers that the current A-H1N1 strain strongly appears tied to vaccinations for the seasonal form on influenza. The hybrid flu began in countries where seasonal vaccinations are commonplace and where A-H1N1 did not respond to the normal seasonal flu vaccination antibody, according to researchers studying the new virus.

What has some researchers alarmed is that the engineers of A-H1N1 purposely planned to make the virus non-responsive to any available vaccine. There is also a suspicion by researchers that the A-H1N1 vaccine under development will trigger a more deadly mutated form of the virus for which the A-H1N1 vaccine will be ineffective.

On May 19, WMR reported: “What researchers have told us is that as long as the current AH1N1 can infect humans, it will not try to mutate. Even though there have been deaths from AH1N1, most of those infected are sick for up to four days, take Tamiflu or similar drugs, and recover with immunity from the hybrid or ‘novel’ virus . . . However, with vaccinations, the AH1N1 virus will, of course, be rejected by human hosts and cases around the world will decrease. However, then, the virus will begin to mutate in order to successfully infect human hosts. And when that happens, the new, newly-mutated virus will become much more transmissible and more pathogenic. The nightmare scenario is that the new, mutated virus may take on the characteristics of H5N1 or the avian flu. The vaccines administered for AH1N1 will be ineffective against the new strain of H5N1 and the world may face a more deadly pandemic then the current AH1N1 outbreak. There are scientists at WHO who are aware of this scenario but their alarm has been suppressed by political and economic considerations.”

Public health officials in Brazil are reporting that the A/H1N1 virus is now in the process of mutating, confirming our earlier reports. A new variant of the pandemic virus is showing up in patients in Brazil making treatment more difficult.

On May 13, 2009, WMR reported: “Because of the rapid mutation of the virus and the fact that, unlike 1918, rapid global transportation is now the norm, scientists are predicting that the molecular clock of the A/H1N1 virus, coupled with modern transportation, means that almost all the countries of the world will experience an A/H1N1 outbreak within the next few months.”

The prediction about the rate of global infection is being borne out by reports of the virus now being reported in many more nations, including South Africa, Yemen, Qatar, India, and Morocco, as well as uncontained surges in Australia, New Zealand, the UK, Utah, and Argentina.

In another suspicious turn of events, Ivorian national Konan Yao, a former researcher at the Winnipeg laboratory that has been involved in A/H1N1 research and who was arrested by the FBI at the U.S. border crossing on May 5 trying to sneak 22 vials of Ebola and HIV genetic material into the United States for his new job at the National Institutes of Health in Bethesda, Maryland, near Washington, DC, was given his post-plea bargain sentence in federal court in Grand Forks, North Dakota, late last month: 17 days in prison which equated to time served and a $500 fine. Yao’s federal charge was “failure to present merchandise for inspection,” a lesser charge from the original “attempting to bring biological material into the United States without a permit.” Yao’s new job was at the NIH’s Biodefense Research Laboratory.

The federal prosecutor who cut the plea deal with Yao is Lynn Jordheim, the assistant U.S. attorney in Fargo, who also happens to be the U.S. Attorney’s office representative on the Anti-terrorism Advisory Council (ATAC) and Crisis Management Coordinator for the federal jurisdiction and, more intriguing, the “Confidential Human Source Coordinator.”